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    Capitalization of equipment

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    Morton Corp. purchased equipment for 46000. they also paid 1200 for freight insurance while in transit, sales tax 850, insurance taxes maintenance for the first year of use was 1000.

    How much should Morton capitalize as the cost of the equipment?

    A. 46000
    B. 46850
    C. 48050
    D. 49050

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    Solution Summary

    This solution helps explore the amount Morton Corp should capitalize as the cost of equipment.